US services sector expands in March for 4th straight month

By Ovunc Kutlu

ISTANBUL (AA) - Economic activity in the US services sector expanded in April for a fourth consecutive month, according to a report released Wednesday by the Institute for Supply Management (ISM).

ISM's non-manufacturing purchasing managers’ index (PMI), also known as the ISM services PMI, came in at 51.9% -- 0.7 percentage points higher than the reading in March of 51.2%.

Analysts expected the index, which indicates the overall economic condition of the services sector, to post a 51.8 reading.

A reading above 50 indicates growth and below that shows contraction.

The US services sector has grown in 34 of the last 35 months, with the lone contraction in December, according to the ISM.

The index hit an all-time high of 69.1 in November 2021.

“There has been a slight uptick in the rate of growth for the services sector, due mostly to the increase in new orders and ongoing improvements in both capacity and supply logistics," ISM Chair Anthony Nieves wrote in the report.

"The majority of respondents are mostly positive about business conditions; however, some respondents are wary of potential headwinds associated with inflation and an economic slowdown," he added.